Reverse Exchange

A Reverse Exchange occurs when an investment property is acquired, then a property already owned by the investor is sold. Or in other words the Replacement Property is acquired before the Relinquished Property is sold. This differs from a traditional exchange, during which one property is sold and then another is acquired. In other words, a Reverse 1031 Exchange allows you to acquire your like-kind replacement property first and then sell your relinquished property if you are in the position to do so. Because of the strategy and complexity involved in a Reverse Exchange, an intermediary is likely needed to facilitate your exchange.

Why Choose a Reverse Exchange?

If you have the funds to do so, opting for a Reverse Exchange can give you greater returns and allow you additional time to make decisions. In addition to these benefits, other advantages of a Reverse Exchange include:

  • Opportunity. By eliminating the delay in selling another investment first, you have a prime chance to act when a golden opportunity arises.
  • Strategic tool. A Reverse Exchange can act as a strategic tool that allows you to take advantage of changes in the market since it cuts down the waiting period and allows for more “on-the-fly” decisions.
  • Utilize extra funds. If you have funds other than equity in the relinquished property, a Reverse Exchange is a perfect opportunity to acquire the replacement property with such funds.

Get Started on Your Reverse Exchange Today

Whether you simply have questions about Reverse Exchange or are ready to get started investing in one, the expert staff at 1031Xchange, LLC can help. We can act as your qualified intermediary to help facilitate your exchange and can provide expertise from all sides of your transaction. For more information, contact our office by phone today at (866) 724-1031.